Walt Disney posts losses, blames COVID-19
COVID-19 had taken a $3.1 billion bite out of the company’s quarterly revenues
Stocks impacted: The Walt Disney Company (DIS)
Walt Disney reported fourth-quarter results that topped estimates, pushing shares higher in extended trading overnight despite the first annual loss in more than 40 years. The entertainment giant reported fiscal fourth-quarter losses of $710 million, or 39 cents a share, instead of the $777 million in profits it recorded in the year-ago period. For the full fiscal year, Disney recorded a GAAP net loss of $2.83 billion. Disney’s revenues fell 23% to $14.7 billion. The company estimated that COVID-19 had taken a $3.1 billion bite out of its quarterly revenues and a $7.4 billion chunk out of its annual sales, with almost all of it ($6.9 billion) coming from the theme parks and experiences division. Disney shares that have declined 6.9% so far this year, gained about 5% in after-hours trading following the release of the results while officially closing 1.68% lower.
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